CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

Generally, the hotel business is challenging and thrilling and these pave ways for investors to become financially independent, bosses in their own right, create job opportunity and also increase self-esteem. Besides, it gives owners the opportunity to be creative in terms of meeting customers’ expectations. To record huge success in this aspect, efforts must be geared towards putting in place all essentials that will create customer satisfaction because, customers are becoming more conscious of their convenience, hence, want to be fulfilled. The awaking consciousness in customers had sharpened their knowledge horizon, thereby armed them to the extent that customers are readily prepared to challenge bad service rendered. This increase in knowledge has reshaped end user service expectations from service providers (Oladele, 2011). This heightened knowledge had exposed the organisation of hotel businesses to embrace factors that are capable of enhancing customer patronage. This is because the society depends on organisations, so also organisations depend on the society for survival and for achieving specific and desirable ends, through services, products, and facilities offered to the members of the society. Therefore, effective customer service through the availability of quality facilities cannot be ignored in the realm of achieving effective customer patronage in hotels.

Customer satisfaction is a critical success factor in service organizations. Hotel industries in developing countries also have to compete with others and have to satisfy local and international customers, because, today‟s customers are more aware, educated and open to a lot of information through web sources, internet, bulletins, magazines, journals, articles, etc., (Armstrong, Mok et al. 1997; Padma and Rajendran 2010). Customer satisfaction is a key to building lasting relationships with consumers. Satisfied customers repurchase the service, recommend and encourage others to use the service, develop positive word of mouth toward the service and the organization, pay less attention to competitive brands and advertising, are less sensitive to price and buy other services (Zekiri, 2011).

A dissatisfied consumer, on the other hand, responds differently. As a satisfied customer tells people about a good service experience, dissatisfied customer complains to even more people than a satisfied customer does. In the hotel industry, service quality received much attention from both researchers and practitioners because of its positive impact on financial performance, customer satisfaction, and retention (Akbaba, 2006; Ghobadian, et al, 1994; Gržini´c, 2007; MartinezCaro & Roemer, 2006; Tam, 2000). Ultimately, quality enhancement is a key determinant for the success of an organization in today’s competitive market environment (Anderson et al, 1994). Therefore, marketers’ in the service industry should pay close attention to the issue of service quality (Zeithaml et al, 1996). By studying the overall interest and the decision making process of buyers, service delivering organizations might help consumers to go through it. Hence, this study will focus on hotels so as to identify basic service quality attributes, service delivery and customer satisfaction among hotels.

The advent of dynamism in facilities becomes an imperative in the context of achieving effective customer patronage in hotel business provided to end users has reshaped the activities of hotels in Nigeria simply because most activities beyond lodging are now being carried out in hotels. Past studies have indicated the importance of facilities as a sub set of critical success factors in the management of service oriented organisations and their findings tend towards diverse and different focus (Mosoma, 2014; Okibo & Ogwe, 2013; Natuhwera, 2011; Shariff et al., 2015; Jakpar & Johari, 2012; Lacap, 2014; Kumar & Malik 2013; Choi & Chu, 2001; Zaim et al., 2013; Oliveira et al., 2013). Nigeria as a frontier market with the growing population of about 170 million is fast becoming the center of focus for potential investors who see Nigeria as a greener pasture where business will thrive. The dream of Nigeria as hospitality investment destination may not be fulfilled, if necessary quality facilities are not put in place. Therefore, this study intends to investigate the influence of facilities quality on consumer patronage of hotels in Nigeria.

1. STATEMENT OF THE PROBLEM

In the event that customers are satisfied with facilities, products or brands, they most likely become loyal customers and keep spreading good word of the hotel. In that manner, in the event that they are disappointed, they will probably switch off brands and talk bad of the brand to different customers about the hotel. The brand of the hotel is an essential factor that emphatically or contrarily influences advertising exercises and the image is the main thing that creates a good impression of the hotel (Pearce & Robinson, 2011).

Nurminen (2007) discovered that cost is not the main reason that causes dissatisfaction of customers. Basically, customer dissatisfaction is mostly caused by offering low quality products and services to customers. Customer satisfaction assumes an imperative part of your business. Not only is it the main pointer to quantify client unwaver-ingness, but also a key purpose of separation that helps you to draw in new clients in focused business situations (Nurminen, 2007). With these, the study will try to investigate what really influences consumer’s patronage in the hotel.

1. AIM AND OBJECTIVES OF THE STUDY

The aim of this study will be to investigate the influence facilities on consumer patronage among selected hotels in Uyo L.G.A

The study sought to:

1. Examine the relationship between facilities and consumer patronage in the hotel
2. Examine whether good facilities causes consumer patronage in the hotel
3. Ascertain the influence effect of facilities on the level of consumer patronage in the hotel
4. To find out ways to encourage and promote good facilities to enhance quality and quantity patronage of consumers in the hotel.

1. RESEARCH QUESTIONS

Arising from the research objectives, the following research questions will be address in the study as presented below:

1. What is the relationship between facilities and consumer patronage in the hotel?
2. Does good facilities causes consumer patronage in the hotel?
3. What is the influence effect of facilities on the level of consumer patronage in the hotel?
4. What are the ways of encouraging and promoting good facilities to enhance quality and quantity patronage of consumers in the hotel?
   1. RESEARCH HYPOTHESIS

The following hypothesis will be formulated and tested below:

H0 there is no significant influence of facilities and consumer patronage in hotels.

H1 there is significant influence of facilities and consumer patronage in hotels.

1. SIGNIFICANCE OF THE STUDY

The study is very important because from the findings of the study, it will better understanding of hotel managers to know the influence facilities behind hotel patronage of their esteem customers or consumers.

Hotel managers will come to the lime light of putting adequate and quality facilities in their hotel premises to attract more consumers for their service delivery.

1. SCOPE OF THE STUDY

The study is on the influence of facilities on the consumer patronage among selected hotels in Uyo L.G.A.

The focuses on the relationship between facilities and consumer patronage and the influence effect of facilities on the level of consumer patronage.

1. LIMITATION OF THE STUDY

TIME CONSTRAINTS: One the challenges experienced by the researcher is the issue of time; the research will simultaneously engage in departmental activities like seminars and attendance to lectures. But the researcher was able to meet up with the deadline for the submission of the project.

FINANCIAL CONSTRAINTS: Every research work needs funding; however lack of adequate funds might affect the speed of the researcher in getting materials for completion of the project.

1. DEFINITION OF TERMS

Customer Patronage

Patronage is defined as the degree to which a customer exhibits repeat purchase behaviour from a service provider, possesses a positive, long-lasting attitude and disposition towards a service provider (Gremler & Brown, 1996). From the view of Oliver (1999), customer patronage is defined as a deeply held commitment to repurchase a firm’s products at the expense of a competitor’s offering. Seock (2009), described patronage as the repeat purchase behaviour at a particular store for either the same products or any other products. From the views of the aforementioned authors it shows that the survival of any business is a function of the rate of patronage.

Facilities Quality

Facilities consist of, but not limited to security, parking space, stable power, constant water supply and road networks. Facilities are considered essential and critical to hotel business success. Conversely, its absence is a bad signal. Facilities, according to Bogoro et al. (2013) are man-made. Obviously, security in the service industry like hotels is the act of securing the customers from physical dangers. This connotes that the surroundings of the hotel must be predictable by customer, habitable, devoid of threat to existence and absolutely free from either physical or psychological harm in any way.

Customer satisfaction (often abbreviated as CSAT) is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.

The hospitality industry is a broad category of fields within the serviceindustry thatincludes lodging, food and drink service, event planning, theme parks, and transportation. It includes hotels, restaurants and bars. The role of Hotel Industry stems from a long history and development in the field of hospitality provision.